Updated June 7th, 2022
Compare different Merchant Cash Advance loan options in the UK, find a lender that meets your requirements. Flexible merchant funding for small business cash flow and growth.
Merchant Cash Advance UK Key Features & Benefits
Did you know that with a Merchant Cash Advance, you can lend money based on your monthly card takings?
We work with a number of lenders that will purchase up to 200% of your future monthly card takings. They agree a fixed repayment amount and then take a percentage of your future card machine takings to repay the loan.
This keeps repayments flexible and in line with turnover, months with lower takings means lower repayments.
A Cash advance may also be referred to as a Business Cash Advance, which is the same product.
Get in touch today to apply for a Merchant Cash Advance.
Learn More About Merchant Cash Advance Loans
Independent Merchant Cash Advance Brokers UK
The acceptance rate of Cash Advance loans are very high. You may be accepted even if you have been declined for other types of business loans.
They can be arranged very quickly, you can have the money in your account in as little as 48 hours from application.
Speak to one of our MCA experts today to see what options may be available to grow your business?
FAQ: Merchant Cash Advance Frequently Asked Questions
A merchant cash advance is a business loan alternative, where you can borrow against your monthly card takings. The lender “purchases” a percentage of your future card takings until the cash advance (plus any costs) are repaid.
It is also referred to as a Business Cash Advance or a Merchant Loan.
Businesses such as retail shops, pubs and restaurants can get quick access to funding, even if they have been declined elsewhere.
It can be used for a wide range of legitimate business purposes. To help grow your business, buy new equipment or to support cash flow. This could include but not limited to the following reasons:
- Fund an order
- VAT or Tax Bill
- Marketing Campaign
- Office Equipment
This really depends on a number of factors such as your businesses credit rating, sector, turnover and other information. It is usually based on a factor rate, so this means a fixed cost of every pound borrowed.
Merchants typically pay an additional 8 – 35p for every £1 advanced.
e.g. Factor Rate 1.3, for every £1000 you borrow you repay £1300.
Please get in touch with us today and we can speak with a number of lenders to get you a quote.
It is only possible to have one split set up on a merchant’s bank account at a time. If you have more than one card provider or receive income from JustEat, Deliveroo or UberEats, then it may be possible to have another.
A UK business can apply for a Merchant Advance loan if you have been trading for 6 months and have card turnover above £2500 per month.
You do not need to be a homeowner and could still be accepted with a low credit score.
You can repay a cash advance early but you do not save any money in doing this as the fixed fee agreed in advance remains the same. Therefore by repaying early, you will still need to repay the agreed fixed amount (minus any repayments already made).
If you already have a cash advance in place you may be able to renew or refinance once 50% has been repaid.
Yes sole traders and partnerships can apply for this type of funding. We can help all legal entities; Sole Traders, Partnerships and Limited companies.
A Merchant Cash Advance provides access to business finance on a short term basis and are usually repaid within 6-12 months. It could give access to funding, when you are not able to get other types of business funding and have been declined.
However it may be more expensive than an alternative, like a business loan.
We cannot give financial advice, therefore you will need to access if the benefit is worth the cost of borrowing.
Which Industries Can Apply For A Cash Advance?
Any business that takes regular card payments either in store, over the phone or via a website can apply for a Merchant Cash Advance.
Here are a list of common sectors that may apply for a cash advance:
- Bars, Pubs & Clubs
- Takeaways & Fast Food
- Hotels and B&Bs
- Hair & Beauty Salons
- Independent Retailers and Shops
- Automotive Garages & MOT
- Furniture & Soft Furnishings
- Theatres & Cinemas
- Sport & Social Clubs
- Cosmetic Surgery
Most trading businesses that take card payments from consumers on a regular basis could be eligible for this type of finance.
Pubs and bars can apply for a cash advance loan as long as you are open and still processing card payments via your terminals. Even if at a lower turnover than usual due to Covid restrictions, you can still apply.
If your pub is currently closed due to Tier 3 restrictions, you may still be able to apply and be conditionally approved. Then as soon as you can reopen and resume trade the loan can be paid out.
Get in touch to speak with an expert on bar & pub finance
Hair & Beauty Salon Merchant Cash Advance
There are a number of cash advance providers that cater for hair salons and beauty salons.
Provided you are taking a significant proportion of you takings via a card terminal, then you can apply for a loan. We have experienced salon finance experts that can discuss your options.
If you are taking a large proportion of your card takings via Just Eat, it is possible to take out a cash advance loan against the average monthly income.
This option is available to many fast growing takeaways and fast food restaurants. Click on the options below to find out more information:
Even if you are not taking orders via Just Eat or other platforms, you can still apply for a merchant cash advance. They can be secured against average card takings from phone or website orders.
eCommerce & Online Retail Finance
If your business is primarily online then you are likely taking most of your income via a merchant service provider like Amazon, Stripe or Shopify.
You could potentially lend up to £500,000 unsecured with a Merchant Cash Advance, with repayments made from your future sales.
Which Merchant Service Providers Can You Get a Cash Advance With?
There are a large number of card payment machine and merchant service providers in the UK. So if you are taking card payments in person or online, you can still apply.
We can fund against nearly every UK payment service provider, here are the most popular ones.
- Amazon Pay & Amazon FBA
- iZettle Advance
- Opayo (Formerly Sage Pay)
- Global Payments
- First Data Merchant Service (FDMS)
- RMS: Retail Merchant Services
- Lloyds Bank Cardnet
- Airbnb Hosts
- HSBC Merchant Services
- NetPay Merchant Services
- Card Cutters
- EVO Payments
- AIB Merchant Services
- Intelligent Merchant Services
- Axcess Merchant Services
- Independent Merchant Services
Apply For A Merchant Cash Advance Loan
As an independent finance broker, we can guide you though the application process and compare providers.
We help you to present your application to an appropriate lender, to maximise your chances of approval.
Call 0161 5469128 or fill in the form below and we will be in touch same day.